$NBIS

Nebius Group generated $227.7M in revenue in the final quarter of 2025, up 547% year over year, but it came in below the market expectation of $242.79M and the shares fell 3%. The company’s net loss widened versus the same quarter last year to $173M; however, Annual Recurring Revenue (ARR) came in at $1.25B, above the company’s own guidance. Management is maintaining its aggressive growth stance by targeting $7–$9B ARR and $3–$3.4B in revenue by the end of 2026. The company emphasized that its current GPU capacity is fully sold out for 2H 2025 and Q1 2026, with no slowdown in demand. It stated that deliveries under the Meta contract have been completed, while Microsoft deliveries will continue through 2026, with the full revenue contribution expected in 2027.
The company is planning an extremely aggressive 2026 CapEx program of $16–$20B. Roughly 60% of this spending is expected to be funded through cash on hand and operating cash flow, with the remainder financed via debt instruments. On the infrastructure side, 9 new data centers were announced, including France, and the company is targeting 3 GW of contracted power by year-end. On operational efficiency, an ambitious adjusted EBITDA margin of around 40% is projected for 2026. Strategically, the acquisition of Tavily, a search engine for AI agents, shows the company wants to deepen not only in infrastructure but also in the software layer. While the near-term revenue miss may create volatility, the company’s aggressive growth plan and high CapEx needs require close monitoring of its financing strategy and the pace of capacity delivery.